Boosting Your Knowledge

Discover more option strategies with interactive learning tools, like the Option Essentials, available in the Education Center. Develop a strategy that uses covered calls that may help generate income by selling a call option on stocks you already own, or protective puts that can help protect your stock positions against market declines – essential options strategies to help pursue your investment goals.

Basic Strategies

Discover how option contracts work, and how to use them to help profit from investments you already own and market price movements. You can also use them as a hedge to help minimize risk in an existing position or portfolio holding.

Covered Calls

Explore covered calls and learn to use one of the most common options strategies to your advantage. Covered calls allow you to sell, or “write” a call option on shares you already have in your portfolio for a contract price that is credited to your account. You may also profit from limited stock price appreciation and dividends. The risk is that if assigned, you would have to sell your stock at the contract strike price.

Protective Puts

Learn how to use one of the most popular market hedging strategies to potentially lock in a share price and minimize downside risks. If you feel the market may decline, this options strategy can help protect individual stock positions from a price decline. There are risks, but they're limited to the amount you pay for the put option contract.

When you create your account with TD Trade Prime Station, you’ll get access to a larger library of educational resources, so you can learn just about anything and everything when it comes to investing and trading.

Harnessing thinkorswim

thinkorswim offers professional tools like SpreadBook, SpreadHacker, and quantitative analysis features. Check out orders other customers are working on, find defined-risk options trades, and perform stress tests in real and hypothetical positions to plot profit/loss potentials and more.

Take Action with Trade Triggers™

Trade Triggers lets you generate alerts and enter orders in your account when options you are following reach certain conditions – both outright price and relative value. Activated based on market conditions you set, you’ll stay in step with the fast-moving options market.

Real-Time Insights from Analytic Chain

Analytic chain lets you easily modify and recalculate theoretical values in real-time, helping you spot potential trading opportunities and gauge the market’s volatility outlook. Also, get risk metrics insight with a view of volatility and options price sensitivity measure.

TradeWise Trading Strategies

TradeWise Advisors, Inc. an affiliated investment advisor provides options trade recommendations, backed by analytical insights that are designed to meet specific risk-defined strategies. TradeWise sends those recommendations to your inbox. You make the trade, or if you are a qualified Trade Prime Station client, you can elect to have Trade Prime Station do it for you automatically through the Autotrade service. It’s easy— and TradeWise provides knowledgeable trade advice paired with valuable option education.*

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TradeWise strategies are not intended for use in IRAs, may not be suitable or appropriate for IRA clients, and should not be relied upon in making the decision to buy or sell a security, or pursue a particular investment strategy in an IRA. TradeWise recommendations cannot be executed in IRAs through the Autotrade service.

Learn More about TradeWise